VIIller Toy Company manufactures a plastic SWI as shown by its June contribution format income statement below: iming pool at Its westWOod Plant. The plant nas been experiencing problems Flexible Actual Budget $ 250,000 $ 250,000 Sales (4,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 66,760 22,000 88,760 81,190 22,000 103,190 161,240 146,810 Manufacturing overhead Selling and administrative Total fixed expenses 63,000 88,000 151,000 63,000 88,000 151,000 Net operating income (loss) $ 10,240 $ (4,190) Contains direct materials, direct labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control." Upon reviewing the plant's variable cost of goods sold. She has been provided with the following standard cost per swimming pool: come statement, Ms. Dunn has concluded that the major problem lies in the Standard Quantity or Standard Hours Standard Price or Rate Cost Direct materials $ 2.40 per pound $ 7.90 per hour $ 3.40 per hour $ 9.12 3.8 pounds 0.7 hours Direct labor 5.53 Variable manufacturing overhead 0.6 hours* 2.04 Total standard cost per unit $ 16.69 Based on machine-hours.
VIIller Toy Company manufactures a plastic SWI as shown by its June contribution format income statement below: iming pool at Its westWOod Plant. The plant nas been experiencing problems Flexible Actual Budget $ 250,000 $ 250,000 Sales (4,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 66,760 22,000 88,760 81,190 22,000 103,190 161,240 146,810 Manufacturing overhead Selling and administrative Total fixed expenses 63,000 88,000 151,000 63,000 88,000 151,000 Net operating income (loss) $ 10,240 $ (4,190) Contains direct materials, direct labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control." Upon reviewing the plant's variable cost of goods sold. She has been provided with the following standard cost per swimming pool: come statement, Ms. Dunn has concluded that the major problem lies in the Standard Quantity or Standard Hours Standard Price or Rate Cost Direct materials $ 2.40 per pound $ 7.90 per hour $ 3.40 per hour $ 9.12 3.8 pounds 0.7 hours Direct labor 5.53 Variable manufacturing overhead 0.6 hours* 2.04 Total standard cost per unit $ 16.69 Based on machine-hours.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 16E
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